There are four jet ski rental companies on a small tourist island. The accompanying table shows the quantity of jet skis that each firm rents in a typical year and the per-hour price that each firm currently charges for each jet ski it rents. If Tropical Jet Skis raised its price to $60.25 and all other firms subsequently increased their prices by $10.00, all firms have: $\begin{array}{lrr}\text { Firm }&\text { Quantity }&\text { ?rice }\
\text { Little Island Waves } & 50 & \$ 50.00 \
\text { Tropical Jet Skis } & 1,200 & \$ 51.25 \
\text { Bhre Ocean Rentals } & 78 & \$ 51.65 \
\text { Ocean Rider Emporium } & 140 & \$ 50.95
\end{array}$

Question

Quizplus · Accepted Answer

Tacit collusion occurs when firms indirectly coordinate actions by signaling their intention to reduce output and maintain pricing above competitive levels. It is not illegal, unlike explicit collusion, which involves direct communication and agreements.

There Are Four Jet Ski Rental Companies on a Small